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Does Jon and Kate Plus 8 Equal Bankruptcy?

Posted By admin || 3-Nov-2009

Jon and Kate - Bankruptcy

We've all seen them on TLC's hit show "Jon and Kate Plus 8" but what many didn't know is that under the veneer of a happy family life were the underpinnings of a messy divorce and brewing financial disaster.  And according to an article in Sawf News, it isn't just Jon and Kate's marriage that's on the rocks. Many sources suspect that the couple may need to file bankruptcy to get relief from the financial chaos surrounding them.

The article said:

"Jon and Kate Gosselin have a $720,000 outstanding mortgage payment on their $1.12 million estate in Wernersville, Pa, and they probably owe money on their previous house...the estranged couple's previous property in Elizabethtown, Pa, bought for $280,000 in 2006, is reportedly still on the market."

Furthermore, Kate Gosselin is accusing her soon to be ex-hubby of taking $230,000 of $231,000 in their joint bank account, leaving Kate and her eight children with only $1,000 to pay their bills and put food on the table. Jon Gosselin has been ordered to return $160,000 of the money or face contempt of court. It's important to note that if this couple does decide to file bankruptcy that appropriated money will need to be returned to the bankruptcy estate.

In his own defense Jon Gosselin said:

"I've never taken any money out because over 10 years, Kate handled all the banking," he said. "Over the past four years of doing the show, we accrued $2,250,000. She says in the past week I took $230,000. I have withdrawn roughly $177,000 over the course of a year, which is less than 10 percent of what we made. That's like my paycheck."

This is the type of rancor that can occur during a divorce. When finances and divorce mix, we often end up with a volatile combination that can result in disaster for all parties involved. Even if they don't want to, Jon and Kate may need to file Chapter 13 bankruptcy if they want to get a handle on this financial situation. Filing Chapter 13 bankruptcy will put a stop to any pending foreclosures, lawsuits or other collection actions against one of both of the Jon and Kate duo.

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